Experts have named several altcoins that show signs of overvaluation. The list includes "meme" coins, Ethereum and other cryptocurrencies
There are several cryptocurrencies that may fall in price soon. Topplabs.org experts shared which altcoins are showing signs of overvaluation.
"Memorial" token Shiba Inu is overvalued in terms of technical analysis, says Nikita Zuborev, senior analyst at Bestchange.ru. According to him, the coin has a high value of the relative strength index (RSI). Roman Nekrasov, co-founder of the ENCRY Foundation, also spoke about signs of overvaluation of Shiba Inu. He stressed that the only goal of the project is to be a competitor to Dogecoin, but that this goal is not enough for the viability.
“Why is he needed more? It is completely unclear. In addition, DOGE has already proven its viability by surviving cryptozyme, while SHIB has only a year of existence behind it. At the same time, due to a provocative, but undeniably successful marketing campaign, the coin skyrocketed in value. I believe that SHIB will collapse in the coming months, ”predicted Nekrasov.
Altcoin Terra is also overvalued from a technical point of view, analyst Zuborev noted. According to him, the relative strength index of the RSI token is around 75-80. The expert warned that this is a harbinger of a serious reversal, and a reverse trend may begin in the near future.
Filecoin did not justify itself at all, although the idea seemed very promising, says Nekrasov. He recalled that the coin fell significantly after it set an all-time high at $ 189 in April. According to the co-founder of the ENCRY Foundation, the current $ 54 level for Filecoin is overstated and the coin will continue to fall.
From the point of view of fundamental factors, Ethereum remains overvalued, Zuborev said. He explained that investors estimate the project much more expensive than the market, and many positive forecasts are associated with the effect of future news, therefore, in case of any disruption of plans or the onset of the events themselves, altcoin can go into serious corrections. Globally, the asset remains attractive in long-term planning, but locally, many factors can cause short-term collapse of the exchange rate, the specialist emphasized.